Indian equities witnessed broad-based selling on Wednesday, with pressure visible across large-caps as well as the broader market segments. The Nifty 50 declined 1.55 per cent to close at 24,480.50, after touching an intraday low of 24,305.40, compared with the previous close of 24,865.70. The index opened lower at 24,388.80 and failed to sustain early attempts at recovery. The BSE Sensex fell by 1,122.66 or 1.40 per cent to close at 79,116.19.
Broader markets underperformed the benchmark indices, highlighting risk aversion among investors. The Nifty Next 50 dropped 2.70 per cent, while the Nifty Midcap 100 fell 2.16 per cent and the Nifty Smallcap 100 declined 2.11 per cent. The weakness was even sharper in the lower end of the market-cap spectrum, with the Nifty Microcap 250 sliding 2.65 per cent, signalling continued pressure in speculative and high-beta stocks.
Among sectoral indices, metals were the worst hit, with the Nifty Metal index plunging 3.99 per cent. PSU banks fell 3.24 per cent, while realty stocks declined 3.11 per cent and oil & gas stocks slipped 3.09 per cent, reflecting heavy selling across cyclical sectors. Auto stocks also remained under pressure, with the Nifty Auto index dropping 2.44 per cent.
Financials contributed significantly to the decline. The Nifty Bank index fell 1.81 per cent, while the Nifty Financial Services index slipped 1.97 per cent, indicating weakness across lenders and NBFCs.
Defensive sectors provided limited support. IT stocks were relatively resilient, with the Nifty IT index marginally up 0.11 per cent, making it the only sector trading in positive territory during the session. Meanwhile, pharma and healthcare stocks fell comparatively less, declining about 1.24-1.40 per cent.
Market volatility surged sharply during the session. India VIX jumped 23.40 per cent to 21.14, signalling rising nervousness among traders amid global geopolitical tensions and risk-off sentiment.
Overall, the data suggests a clear risk-off environment, with broader markets correcting more sharply than frontline indices, indicating continued unwinding of positions in mid-cap, small-cap and cyclical stocks.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Global risk sentiment remained fragile amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, which kept oil prices volatile. Indian equities mirrored the broader risk‑off environment due to the impact of inflation and potential for higher CAD (current account deficit). The continued depreciation of the rupee also remains a key concern, while incremental foreign outflows lead to near-term volatility in the market. We advise investors to avoid panic sell-off and adopt a disciplined, long-term perspective and exercise patience over the next several weeks, as current price levels may offer a strategic entry point for the medium to long term.”
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